- Category: Bankruptcy
- Published: Thursday, 28 January 2016 15:40
- Written by CBC
- Hits: 509
If you have filed bankruptcy or know someone that has, you may know firsthand or have heard that the major benefit in all this is the automatic stay. What is automatic stay in a bankruptcy filing? Glad you asked. It is a legal procedure that takes effect once the petition for bankruptcy has been filed with the court. What it does is to stop all of the creditors listed on the bankruptcy from making contact with any debtor. It also stops all attempts at collecting the debt. This is especially true in a Chapter 7 bankruptcy.